New Registration and Mortgage Regulations - Laws 13 & 14
Laws 13 & 14 are formed to collectively protect the investors and regulate the property market in the emirates.
The Land Department Law 13 of 2008 aims to monitor and regulate off-plan sales in Dubai by pre-registration of all such sales with the Land Department creating a full official database of all property transactions. Off-plan sales refers to selling of properties before their structure is built.
As per this latest law, it is now mandatory for off-plan property sales to register with the Land Department in Dubai. This law has been brought into existence in order to safeguard the interests of property investors and off-plan property buyers in the emirates.
The law also forbids master developers and sub developers from charging a transfer fees on sales of off-plan properties. Only administrative fees can be accepted and that too after approval by the Land Department.
From now on, any sale or disposition that transfers or restricts title shall be considered void if the property sale has not been registered in the interim real estate register. Any sales done before the law actually comes into effect must register within 60 days.
Law 14 is related to mortgages and links with Law 13 to make it easier for Banks to give loans. Earlier only selected properties were able to get finance from Banks by providing their internal list of buyers and by giving Memorandums of Understanding(MOUs) that no contracts would be transferred without a No Objection Certificate from the banks. However, now because of the pre-registration Law 13, the Land Department is itself the guarantor for Banks and the Banks are much more comfortable in lending this way.
Both these laws pave a path for the future of real estate in this part of the world and ensure that good market practices and standards are set in place.
The Land Department Law 13 of 2008 aims to monitor and regulate off-plan sales in Dubai by pre-registration of all such sales with the Land Department creating a full official database of all property transactions. Off-plan sales refers to selling of properties before their structure is built.
As per this latest law, it is now mandatory for off-plan property sales to register with the Land Department in Dubai. This law has been brought into existence in order to safeguard the interests of property investors and off-plan property buyers in the emirates.
The law also forbids master developers and sub developers from charging a transfer fees on sales of off-plan properties. Only administrative fees can be accepted and that too after approval by the Land Department.
From now on, any sale or disposition that transfers or restricts title shall be considered void if the property sale has not been registered in the interim real estate register. Any sales done before the law actually comes into effect must register within 60 days.
Law 14 is related to mortgages and links with Law 13 to make it easier for Banks to give loans. Earlier only selected properties were able to get finance from Banks by providing their internal list of buyers and by giving Memorandums of Understanding(MOUs) that no contracts would be transferred without a No Objection Certificate from the banks. However, now because of the pre-registration Law 13, the Land Department is itself the guarantor for Banks and the Banks are much more comfortable in lending this way.
Both these laws pave a path for the future of real estate in this part of the world and ensure that good market practices and standards are set in place.
Labels: Dubai Law 13, Dubai Law 14, Regulation and Mortgage Law
posted by Property Reporter at
3:39 AM
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